(Sioux City)– A former employee of a Spencer credit union has been sentenced to more than five years in federal prison after pleading guilty to embezzling about 770-thousand dollars.
53-year-old Linda Zech entered the plea December 4th of last year to one count of financial institution fraud and one count of money laundering.
In a plea agreement, Zech admitted she fraudulently dispersed credit union checks and made fraudulent loans to family members and third parties.
She also admitted to taking cash deposited by credit union members.
In addition to the prison sentence, Zech was ordered to make 770-thousand dollars in restitution to the credit union.
The judge also found Zech had approximately 20-thousand dollars in equity on a rental property and ordered her to pay that amount to the credit union within 20 days.
Zech must also serve a three-year term of supervised release following the prison term.
Zech was released on bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
